And Now a Word from the Diverse Suppliers: The Supplier Perspective on Certification
This new research surveyed suppliers. Specifically, it surveyed suppliers on the ANA/AIMM list of certified diverse suppliers. The focus was on certification, to understand its importance, benefits, challenges, ease/difficulty of the process, and more.
Key findings:
- An in-going hypothesis was that suppliers would feel that the certification process was difficult. But that wasn't the case. While 31 percent characterized the process as difficult, 35 percent felt it was easy and 34 percent were neutral — almost exactly evenly distributed.
- There are multiple benefits of obtaining certification. Businesses are included in more RFPs, which provides additional exposure to corporate marketing departments, which leads to increased sales.
- Forty-six percent of respondents rate the importance of obtaining certification for their business as very important; 55 percent rate the importance as top-two box.
The ANA strongly encourages qualified suppliers who are not certified to consider getting their certification.
- Certification helps suppliers be included in more RFPs, which provides additional exposure to corporate marketing departments, which leads to increased sales.
- Certification maximizes the opportunity for suppliers to be considered and hired, since some companies make certification mandatory for doing business with diverse suppliers.
- Certification authenticates that a supplier is indeed who they say they are. It removes the burden to confirm the ownership of a company from the marketer and is instead handled by the certification organization. Major certification organizations include:
- NMSDC: National Minority Supplier Development Council
- WBENC: Women's Business Enterprise National Council
- NGLCC: National LGBT Chamber of Commerce
- MWBE: Minority/Women-owned Business Enterprises
- Certification is not difficult, for most, and the barriers to obtaining certification are minimal. The time needed to gather the required documents and the time to become certified after submitting paperwork are not challenges for most suppliers. Furthermore, once the initial certification is done, recertification is much easier. Cost is not an issue. As examples, for businesses with over $50 million in annual revenue, fees for initial certification are only $1,250 for WBENC and $1500 for the New York & New Jersey Minority Supplier Development Council. Annual recertification fees can be even lower.
Click the DOWNLOAD NOW button for the full report.
Source
"And Now a Word from the Diverse Suppliers: The Supplier Perspective on Certification." ANA, 2021.